The Labour Appeal Court has ruled that employees hired via labour brokerage firms will be entitled to benefits if they remain employed by a company for more than three months.
According to a report by the Sunday Times, the new decision overturned a 2015 judgement, which found that labour brokers and client companies are dual employers.
“The protection is a measure to ensure that these employees are not treated differently from the employees employed directly by the client,” said Judge Pule Tlaletsi in his judgement.
“The purpose of these protections in the context of section 198A (of the Labour Relations Act) is to ensure that the deemed employees are fully integrated into the enterprise as employees of the client.”
This effectively means that after the end of a three month period, labour broker employees cannot be treated any differently from a traditional employee.
Employers will also no longer be able to simply cancel the labour contract and would have a number of obligations including full dismissal procedure under the Labour Relations Act.